Next up on our list of Holiday Winners is Disney (DIS)

Disney is a global entertainment and media conglomerate that was founded 101 years ago as Disney Brothers Cartoon Studio. Today, it continues to bring families that ‘Disney magic’ through popular animated films, TV shows, streaming media, theme parks, and cruises.

Disney’s iconic franchises, merchandise, and theme parks make it a favorite for holiday shoppers and families seeking memorable experiences.

Fiscal 2024 Q4 Earnings --- stock jumped 6.2% on November 14th

• Revenue up 6% YoY to $22.6 billion (beat)
• EPS up 39% YoY to $1.14 (beat)
• Forecasting ‘high-single digit’ adjusted EPS growth in fiscal 2025

Company Updates

The company ended fiscal Q4 with 174 million Disney+ Core and Hulu subscriptions and its combined DTC streaming businesses were profitable for the first time. It had the largest share of U.S. viewership across all formats in September 2024 for the 9th time in the 11 months.

With the two top movies of the year in Inside Out 2 and Deadpool & Wolverine, Disney will launch two more highly anticipated titles this year — Moana 2 and Mufasa: The Lion King — setting the stage for “an extremely promising” 2025 content slate. A consumer touch point ‘multiplier effect’ that includes streaming, parks, cruise ships, and retail merchandise is making Disney’s movie business stronger than ever.

This month, the new Disney Treasure cruise ship will set sail to the Caribbean becoming the company’s 6th ship and first in more than 2 years. To strengthen its position in family cruising, Disney Cruise Line plans to launch two new ships in 2025 and double its fleet by 2031.

Subscriber Growth

In Q4, Disney grew its Disney+ subscriber base to 174 million (an increase of 4.4 million over the prior quarter) and data suggests continued traction.

On the company’s last earnings call,Disney’s CEO explained that “the addition of Hulu on Disney+... is the ultimate collection of high-quality content for every member of the household, from our extensive library of branded and general entertainment titles to news and live events.”

By 2028, projections suggest nearly 40% of the US population will consume content using Disney+ on a monthly basis.

Cinematic Success

Disney’s box office numbers are soaring high this year.

Three of the five highest-grossing movies in 2024 are under the Disney franchise, allowing Disney to hold 20% of the market share. Inside Out 2 and Marvel’s Deadpool & Wolverine broke several box office records driving $316 million in operating income.

With the anticipated release of Mufasa: The Lion King, Disney is well-positioned for dominance in the entertainment industry come 2025

Trend Watch: Box Office Records

Thanksgiving posted record breaking box office totals.

The trio of Disney’s “Moana 2,” Universal’s “Wicked” and Paramount’s “Gladiator II” contributed to the +140% YoY increase in box office totals for the Thanksgiving 5-day weekend.

“Moana 2” made up 53% of the domestic box office total, grossing $225 million during the Nov. 27th to Dec. 1st period. The previous all-time box office record for Thanksgiving weekend was in 2018, which saw the release of 64 movies during the period, nearly double the 33 movies released during the same period this year.

Travel Demand on Cruise Control

Disney Cruise Line is benefitting from a persistent consumer shift to memorable experiences over goods.

With occupancy climbing to 97% in fiscal 2024, the segment has a strong return on investment profile stemming from high-quality experiences and high levels of guest satisfaction.

To keep up with consistent demand, Disney plans to launch 4 new ships from 2027 to 2031, giving vacationers 13 unique travel experiences on the high seas.

Takeaway

Seasonal demand for Disney+ content, themed products, and vacation packages drives strong engagement and revenue opportunities during the holidays. This demand is evident in its subscriber growth, box office success, and strong travel demand.